I was informed, verbally, at work that our retirement plan had gone through non-discrimination testing (which I didn’t even know was a thing, and originally thought this had something to do with race) and it had not passed the test.
[If it’s at all relevant, I’m in my mid-40s and work for a small, not-for-profit health care provider.]
While my taxable income was $114k, I apparently had enough non-taxable income that went into the 403(b) that I squeaked over the $120k threshold. HR said I would be affected by this, but it was no big deal and I would receive some sort of refund. This made zero sense to me, but I was counting on receiving something in writing to explain it.
The next thing I know, a check shows up from my retirement plan administrator in the mail for $2,700 with no explanation whatsoever. The tear-off check stub just calls this as a “withdrawal.”
Now I’m worried about what kinds of taxes and fees I’m about to get slapped with. Is this $2,700 now just counted as regular income, or is it much worse than that?
Should I just throw this into our online savings account? I’d really like to put it back into our retirement savings (I only have the 403(b) account for retirement savings), but of course that’s not an option.
I feel a bit like I’m getting screwed with this whole deal, so please talk me down!
Submitted March 10, 2019 at 05:32PM by mattcloyd https://ift.tt/2CccjmK
